Three plants of Suryajyoti Spinning Mills back on the block at ₹120 crore reserve; Burgul unit missing from lot list

The liquidator of Suryajyoti Spinning Mills Ltd has issued a fresh sale notice for the textile company’s three Telangana manufacturing units and its residual movable assets, with a combined reserve price of ₹123.03 crore, according to a public notice published on August 26 in Business Standard, The Times of India (Telangana) and both the Greater Hyderabad and Telangana editions of Eenadu.

The e-auction is scheduled for September 26, 2026, in four hourly slots on the Baanknet platform, the notice signed by liquidator Madhusudhan Rao Gonugunta says. The last date for submitting expressions of interest with all bid documents, and for depositing earnest money, is September 24.

Suryajyoti Spinning Mills (CIN: L18100TG1983PLC003961) was admitted to the corporate insolvency resolution process by the Hyderabad bench of the National Company Law Tribunal in CP (IB) No. 166/7/HDB/2019, and was ordered into liquidation on April 18, 2023, in IA No. 96 of 2021, according to NCLT order listings published on the Insolvency and Bankruptcy Board of India website.

The lots

The Makthal unit, described in the notice as being around 150 km from Hyderabad airport, carries a reserve price of ₹21.97 crore and an earnest money deposit of ₹2.197 crore, with bidding between 11 a.m. and noon.

The Rajapur unit, described as facing National Highway No. 7 and around 60 km from the airport, is reserved at ₹42.93 crore against an EMD of ₹4.293 crore, with bidding from noon to 1 p.m.

The largest lot is the Kurchrekal unit at Kucherkal village, Balanagar, Mahabubnagar, around 65 km from the airport, reserved at ₹55.10 crore with an EMD of ₹5.51 crore. Bidding runs from 2 p.m. to 3 p.m.

The fourth lot — vehicles, furniture and fixtures, computers and financial assets of the corporate debtor — is reserved at ₹3.03 crore with an EMD of ₹0.303 crore, and is scheduled for 3 p.m. to 4 p.m. The notice states that this lot “will be sold only in case of sale of all the Lot No 1 to 3 only.”

Reserves unchanged from last year’s failed round

The reserve prices for all four lots are identical to those set in the liquidator’s previous sale notice, issued on June 20, 2025, for an auction on July 22, 2025, according to the auction-notice register maintained by IBBI. That round listed Makthal at ₹21.97 crore, Rajapur at ₹42.93 crore, Kurcherkal at ₹55.10 crore and the movable-assets lot at ₹3.03 crore.

Two lots that appeared in the 2025 notice are absent from the current one. The Burgul unit, reserved at ₹24.77 crore in June 2025, does not feature in the August 26 notice. Nor does the lot offering the company as a whole on a going-concern basis, which had been reserved at ₹133 crore in June 2025 and at ₹150 crore in the liquidator’s November 2023 notice. The notice does not state why either lot has been dropped.

Against the November 2023 round, the three plant reserves are down 9.7 per cent in aggregate — Makthal from ₹24.78 crore, Rajapur from ₹46.00 crore and the Kucherkal fabric unit from ₹62.13 crore, per the IBBI register. (Derived: percentage change calculated by this publication from the two sets of published reserve prices.)

Litigation over the July 2025 round

The July 2025 auction was contested. A division bench of the Telangana High Court comprising Chief Justice Aparesh Kumar Singh and Justice P. Sam Koshy declined to stay it, hearing a writ petition by former director Arun Kumar Agarwal, who had challenged an NCLT order refusing to restrain the sale notice, according to a Deccan Chronicle report published in July 2025. The report says the petitioner argued that the stakeholders’ consultation committee had discussed the company’s viability as a going concern and recommended cancelling the sale notice, and that the liquidator had moved the NCLT for a stay on that basis. The bench noted that proceedings had run for six years and that earlier compromise attempts had not fructified.

The IBBI order register also lists an NCLT Hyderabad order dated December 3, 2025 in IA (IBC) No. 154 of 2024 in CP (IB) No. 166/7/HDB/2019, and a separate order in which the tribunal imposed costs on an applicant, Sanjeev Mitla, in a matter against the liquidator.

Terms

The assets are being sold on an “as is where is”, “as is what is”, “whatever there is basis” and “no recourse basis”. Bidders must file a declaration of eligibility under Section 29A of the Insolvency and Bankruptcy Code through the auction platform, and the EMD of the highest bidder is liable to forfeiture if the bidder is found ineligible during the process, the notice says. Bidding for more than one lot is permitted on deposit of separate EMD for each lot. Registration charges, GST and other levies are payable by the bidder over and above the sale price.

The liquidator reserves the right to accept, cancel, extend or modify the terms of the auction at any time, and to reject any bid without assigning reasons, the notice states. Gonugunta’s registration number is IBBI/IPA-001/IP-P00181/2017-18/10360.

Queries have been sent to the liquidator at the process email address cited in the notice. This story will be updated if a response is received.

Also see: Ozone Homes invites bids under insolvency process; EoI deadline September 11